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Financial Analysis - Southwest Airlines case - Essay Example

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South-west airlines faced a number of regulatory and legal hurdles at the time of its incorporation but it eventually emerged as one of the most profitable airlines of US. Herb Kelleher who fought the legal battle for the airline and later became its CEO and Chairman ingrained a…
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Financial Analysis - Southwest Airlines case
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Financial Analysis - Southwest Airlines case

Download file to see previous pages... This attitude is also visible in the recruitment activities of the airlines. While hiring new people the airlines gives preference to candidates with a combative and hardworking spirit. Besides this in the hiring process the airline officials look for traits like dedication, sense of humor and extroverted people with an empathetic attitude in dealing with the peoples’ emotions.
The airline gives special emphasis to learning and expects its employees to learn even from the day to day job experiences. Leadership courses designed for the airline managers emphasize on encouraging, empowering and coaching and are not limited to supervision or rule enforcement. Through regular courses the cultural themes like trust, teamwork, diversity and harmony are ingrained in the employees and supervisors.
The supervisory positions in the airline are mainly filled internally as it is the belief of the management that the people who had been in the system are better equipped in handling and understanding the beliefs of the co-workers and find acceptance among the peer. This concept of internal job promotion motivates the employees to put in their best performance. The compensation offered by the airline is higher than the industry standards and it also consists of a plan for profit-sharing for the senior employees. The company has a non-adversarial and harmonious relationship with the employee unions. Airline’s contract with the employee union does not consist of any restrictive rules permitting even the pilots, gate-keepers and ticket agents to perform loading and unloading work. South-west airline has a “no-layoff policy”. This is because the company is of the belief that laying-off people is only a short term measure of increasing business profits. Instead the company seeks to build a sense of trust with the employees as this makes the employees more loyal towards the company. For this reason the company has been successful in building a good-will with ...Download file to see next pagesRead More
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